Corporate Social Responsibility and Its Impact on Society
CSR in India and Its Impact on Society
Corporate social responsibility (CSR) is about how businesses align their values and behavior with the expectations and needs of stakeholders - not just customers and investors, but also employees, suppliers, communities, regulators, special interest groups and society as a whole. CSR describes a company's commitment to be accountable to its stakeholders.
With businesses focusing on generating profits, sustainability was not a popular concern among companies up until recently. In this era of globalization, multinational corporations (those that conduct business in more than one country) and local businesses are no longer able to conduct destructive and unethical practices, such as polluting the environment, without attracting negative feedback from the general public. With increased media attention, pressure from non-governmental organizations, and rapid global information sharing, there is a surging demand from civil society, consumers, governments, and others for corporations to conduct sustainable business practices. In addition, in order to attract and retain employees and customers, companies are beginning to realize the importance of being ethical while running their daily operations. The corporate response has often meant an adoption of 'a new consciousness', and this has been known as Corporate Social Responsibility (CSR) since the 1970s.
Key CSR issues include governance, environmental management, stakeholder engagement, labor standards, employee and community relations, social equity, responsible sourcing and human rights. CSR is not only about fulfilling a duty to society; it should also bring competitive advantage.
Many CSR initiatives are executed by corporates in partnership with Non-governmental organizations (NGOs) who are well versed in working with the local communities and are experts in tackling specific social problems.
CSR is not a new concept in India. Corporates like the Tata Group, the
Corporate social responsibility (CSR) is about how businesses align their values and behavior with the expectations and needs of stakeholders - not just customers and investors, but also employees, suppliers, communities, regulators, special interest groups and society as a whole. CSR describes a company's commitment to be accountable to its stakeholders.
With businesses focusing on generating profits, sustainability was not a popular concern among companies up until recently. In this era of globalization, multinational corporations (those that conduct business in more than one country) and local businesses are no longer able to conduct destructive and unethical practices, such as polluting the environment, without attracting negative feedback from the general public. With increased media attention, pressure from non-governmental organizations, and rapid global information sharing, there is a surging demand from civil society, consumers, governments, and others for corporations to conduct sustainable business practices. In addition, in order to attract and retain employees and customers, companies are beginning to realize the importance of being ethical while running their daily operations. The corporate response has often meant an adoption of 'a new consciousness', and this has been known as Corporate Social Responsibility (CSR) since the 1970s.
Key CSR issues include governance, environmental management, stakeholder engagement, labor standards, employee and community relations, social equity, responsible sourcing and human rights. CSR is not only about fulfilling a duty to society; it should also bring competitive advantage.
Many CSR initiatives are executed by corporates in partnership with Non-governmental organizations (NGOs) who are well versed in working with the local communities and are experts in tackling specific social problems.
CSR is not a new concept in India. Corporates like the Tata Group, the
References: 1. www.csrnetwork.com/csr.asp 2. http://www.itcportal.com 3. .htm.www.gbsonline.com 4. www.iocl.com. 5. Introduction to Corporate Social Responsibility - Guler Aras & David Crowther, 2008, http: 6. www.in.kpmg.com/pdf/CSR_Whitepaper. 7. www.karmayog.org/csr/ Written By: Ms.Swati Padoshi Faculty in HR